QUESTION PERIOD — Finance
Canada Pension Plan Fund
November 21, 2024
Senator Gold, the Office of the Superintendent of Financial Institutions, or OSFI, acknowledged that Canada’s financial institutions, notably our pension plans, invest in renewable energy and nature internationally while they are doubling down on fossil fuel investment domestically. This troubling trend hinders Canada’s transition and negatively impacts Canadian innovation, competitiveness and productivity.
The government released a voluntarily sustainable investment taxonomy. What further actions does it plan to take to reverse the domestic trends of energy investment? What new authorities can it give to the Office of the Superintendent of Financial Institutions, or OSFI, to encourage more investment towards renewable and climate-aligned energy projects?
Thank you for your question, senator.
As I think most of us understand in the 21st century, a competitive economy is a net-zero economy. Our government is seizing Canada’s economic advantages to attract investment to ensure that Canadian workers and communities benefit from their fair share in the global race to net zero.
That’s why, as you mentioned, the government released made-in-Canada sustainable investment guidelines and climate disclosures for large companies. This will accelerate the flow of private capital. It will grow our economy and create good jobs. It will advance our progress to net-zero emissions by 2050. These sustainable finance initiatives will mobilize further private sector capital towards activities essential to building a sustainable net-zero economy for Canadians.
It has been reported that a managing director at CPP Investments, Mr. Chambers, also sits on the board of Teine Energy, an oil and gas company advocating for the withdrawal of the federal oil and gas emission cap. A conflict of interest between these two roles is evident in favouring short-term profit and fuelling the climate crisis while the other should be focused on the long-term well-being of workers.
Moreover, 7 out of the 11 largest Canadian pension managers have at least one director who is currently a director or executive of a fossil fuel company.
I’m sorry, Senator Galvez, but you only get 30 seconds for a supplementary question.
Thank you for raising this issue, senator. I believe I know where you’re going with this question.
Canada is in a unique and challenging position because we are a country that produces oil and gas, and our economy and the well-being of many regions continues to depend on that. Also, we are a country that is leading in the fight against climate change.
With regard to pension plans and who sits on them, these are independent organizations, and they make their own decisions —
The limit is 30 seconds for the answer as well.
